Ongoing Business Expected To Have Significant Earnings Power
American International Group, Inc. (AIG) today indicated its intent to
refocus the company on its core property and casualty insurance
businesses, generate sufficient liquidity to repay the outstanding
balance of its loan from the Federal Reserve Bank of New York and
address its capital structure. AIG had drawn $61 billion on the Fed
credit facility as of September 30, 2008.
AIG plans to retain its U.S. property and casualty and foreign general
insurance businesses, and to retain a continuing ownership interest in
its foreign life insurance operations. AIG’s
worldwide property and casualty businesses generated approximately $40
billion in revenues in 2007. The company is exploring divestiture
opportunities for its remaining high-quality businesses and assets.
AIG is also actively at work on a number of alternatives for its
Financial Products business and its securities lending program.
AIG Chairman and Chief Executive Officer Edward M. Liddy, said, “We
are refocusing on our traditional strengths in property and casualty
underwriting. We have a number of remarkable businesses with leading
market positions and significant competitive advantages that could not
be recreated today.
“To realize our objective, we will sell a
number of extraordinary businesses that are proving to be highly
attractive to buyers,” Liddy said. “We
have already been contacted by numerous strong, stable parties, and we
expect that buyers will recognize the value of these properties, be a
good strategic fit and offer the greatest potential for growth,
profitability, and continuing opportunities for employees. Our goal is
to emerge from this process as a smaller but more nimble company that is
solidly profitable and has good long-term growth prospects.”
AIG’s global coordinators for the divestiture
program are The Blackstone Group and J.P. Morgan.
A conference call for the investment community will be held today at
8:30 a.m. EDT. The call will be broadcast live on the Internet at www.aigwebcast.com.
A replay will be archived at the same URL through Friday, October 24,
2008.
It should be noted that the remarks made on the conference call may
contain projections concerning financial information and statements
concerning future economic performance and events, plans and objectives
relating to management, operations, products and services, and
assumptions underlying these projections and statements. It is possible
that AIG’s actual results and financial
condition may differ, possibly materially, from the anticipated results
and financial condition indicated in these projections and statements.
Factors that could cause AIG’s actual results
to differ, possibly materially, from those in the specific projections
and statements include developments in global credit markets and such
other factors as are discussed in Item 1A. Risk Factors of AIG's Annual
Report on Form 10-K for the year ended December 31, 2007, in Item 2.
Management’s Discussion and Analysis of
Financial Condition and Results of Operations of AIG’s
Quarterly Report on Form 10-Q for the period ended June 30, 2008, and in
AIG's Current Report on Form 8-K dated September 26, 2008 (reporting AIG’s
entry into a material definitive agreement). AIG is not under any
obligation (and expressly disclaims any such obligation) to update or
alter its projections and other statements whether as a result of new
information, future events or otherwise.
American International Group, Inc. (AIG), a world leader in insurance
and financial services, is the leading international insurance
organization with operations in more than 130 countries and
jurisdictions. AIG companies serve commercial, institutional and
individual customers through the most extensive worldwide
property-casualty and life insurance networks of any insurer. In
addition, AIG companies are leading providers of retirement services,
financial services and asset management around the world. AIG's common
stock is listed on the New York Stock Exchange, as well as the stock
exchanges in Ireland and Tokyo.
American International Group, Inc.
Investment Community:
Charlene
Hamrah, 212-770-7074
or
News Media:
Nicholas Ashooh,
212-770-3523
